Debt
Pakistan is preparing to enter the digital finance space by planning to tokenize a portion of its domestic government debt, aiming to attract a wider pool of investors and modernize the country’s public debt market.
Adviser to the Finance Ministerm Khurran Schehzad, said that the Ministry of Finance intends to tokenize up to $2 billion of domestic government debt in the first phase, with a focus on enabling retail investor participation.
The plan was disclosed during ITCN Asia, one of Pakistan’s largest annual technology exhibitions, where policymakers and industry leaders discussed emerging technologies and financial innovation.
Tokenization involves converting traditional financial assets, such as government bonds, into digital tokens recorded on a blockchain. These tokens can be bought, sold and held electronically, reducing transaction costs, improving transparency, and opening access to investors who are usually excluded from institutional debt markets.
Adviser to the Finance Minister Khurram Schehzad said the initiative is designed to broaden investor access and modernise Pakistan’s debt ecosystem.
“The Ministry of Finance has planned to tokenize a portion of domestic debt worth $2 billion in the first phase, primarily targeting retail investors,” Schehzad said while speaking at the forum.
The government is increasingly utilizing ITCN Asia to outline early policy thinking on digital finance, artificial intelligence, and next-generation technologies. However, officials noted that many initiatives remain at an exploratory stage before formal implementation.
If executed, the move could mark a major shift in how Pakistan raises and manages public debt, potentially integrating blockchain-based instruments into the country’s financial system while expanding participation beyond banks and large institutions.